Sale of Interest in Proximus

Vodafone Group Plc
24 August 2006


25 August 2006

                        SALE OF 25% INTEREST IN PROXIMUS

Vodafone today announces that it has agreed to sell its 25% interest in Proximus
to Belgacom for a consideration of €2.0 billion in cash. Belgacom already owns
75% of Proximus which is the leading mobile operator in Belgium.

The consideration implies an Enterprise Value to EBITDA (Note 1) multiple of 
7.2x for the financial year ending 31 March 2007. Net cash proceeds to 
Vodafone are anticipated to be €2.0 billion (£1.4 billion).

Vodafone and Proximus have also signed a revised long-term Partner Network
Agreement in Belgium with an initial five year term. This will enable Proximus
and Vodafone customers to continue to benefit from Vodafone's global products
and services such as Vodafone live!, Vodafone Mobile Connect Card, Blackberry
from Vodafone and international roaming services, including preferred roaming
arrangements. In addition, the two companies will continue to co-operate in
serving international corporate customers.

Commenting on the transaction, Arun Sarin, Chief Executive of Vodafone, said:

'We have enjoyed a long and successful relationship with Belgacom, and together
have built the leading mobile operator in Belgium. We do not, however, see
ourselves as the most appropriate long-term holder of this minority stake. In
line with our strategy of actively managing our portfolio and maximising
returns, we have achieved an attractive price with this sale. I am also pleased
that our customers will continue to benefit from our products and services in
Belgium through a renewed long-term Partner Network Agreement with Proximus.'

The sale is subject to certain regulatory approvals and is expected to close
before 31st December 2006. The sale proceeds will be used to reduce Vodafone's
net indebtedness.

This transaction does not materially affect Vodafone's proportionate mobile
revenue and EBITDA outlook for the financial year ending 31 March 2007. However,
Vodafone will no longer receive anticipated dividend income from Proximus of
approximately £150m this year and there will be a corresponding reduction in the
Group's free cash flow outlook for the financial year ending 31 March 2007.

As a result of the transaction, Vodafone currently anticipates recording a gain
on disposal of approximately £0.45 billion in its results for the year ending 31
March 2007 and will cease recording its share of the result of its 25% interest
in Proximus from the date of closing of the sale.

                                     -ends-

For further information:

Vodafone Group

Investor Relations                             Media Relations
Telephone: [phone]                 Telephone: [phone]



Notes to Editors

About Vodafone

Vodafone is the world's leading international mobile telecommunications group
with equity interests in 27 countries across 5 continents with 186.8 million
proportionate customers worldwide as at 30 June 2006 as well as 33 partner
networks. For further information, please visit www.vodafone.com

About Proximus

Proximus is the trading name of Belgacom Mobile SA. Proximus is the mobile
telephony market leader in Belgium and is 75% owned by the Belgacom Group and
25% owned by Vodafone. For further information, please visit www.proximus.be

About Belgacom

The Belgacom Group (Belgacom S.A. and its subsidiaries) is the largest
telecommunications company in Belgium and a market leader in many fields,
particularly in wholesale and retail fixed line services, mobile communications,
Internet and broadband data transmission services. For further information,
please visit www.belgacom.be

Note 1: Proximus EBITDA estimate for fiscal year 2007 is based on a consensus of
research analysts' estimates.

For illustrative purposes an exchange rate of £0.68:€1 has been used.

(c) Vodafone Group 2006. VODAFONE, the Vodafone logos, Vodafone live! and
Vodafone Mobile Connect are trade marks of the Vodafone Group. Other product and
company names mentioned herein may be the trade marks of their respective
owners.




                      This information is provided by RNS
            The company news service from the London Stock Exchange